Homefix: Correcting ceiling leaks complicated, expensive

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Q: My house was built in the early 1920s. I bought it in 2000 and have done a lot of work on it. The roof was replaced in 2003 by friends of friends who worked in construction. They weren't licensed roofers. Just because we wanted to save some money, it ended up being a nightmare! For two years in a row, there have been leaks in three rooms on the second floor and lots of stains on the ceilings of the main floor. I realized the main problem is an ice dam and a poorly insulated attic.
I've been told the roof must be replaced entirely and an ice shield must be installed on the problem areas. This will cost around $6,000. Then, the next major work will be to insulate the attic. I'm unsure about the best type of insulation for my attic, since it seems the house doesn't have much.
The shape of the roof is like that of a barn and there is a cathedral ceiling on the main room where there are leaks. One company said the best way to insulate is with cellulose (it'll cost $2,000 for ceiling and to insulate walls with foam), but the other company said cellulose is a fire hazard.
They suggested fiberglass ($1,000 for ceiling only). Another company said the house is so old, I'd have to get an electrician to check if there is any old electrical wiring running in the attic, and there's also the possibility of having asbestos from the 1970s.
What do you think I should do?
A: There's no need to replace the entire roof covering if you can match the shingles. You can have the first 4 feet of shingles removed, an ice and water shield installed and the shingles replaced.
Wiring is a problem in older homes -- especially in attics. If you have the old "knob and tube" (K&T) wiring in the attic, it cannot be safely covered with insulation. Knob-and-tube is a wiring method where the two electric wires are attached to ceramic "knobs" where the wiring crosses over a board or the wiring is inside a ceramic "tube" where the wiring enters a board.
Other wiring types are "Greenfield" or "BX" -- the wires are inside a flexible metal conduit -- and "Romex," which is standard modern wiring. Older Romex might be covered with a clothlike material, whereas more up-to-date Romex has a plastic cover, or the Romex may have color-coded plastic, which is ultra-modern.
Insulating the attic is a DIY project if you have friends to help. The home stores will loan you the equipment necessary to blow in loose-fill insulation, but it takes two or three people to do the job, and you have to buy the insulation from the home store.
I prefer fiberglass for DIY, but cellulose is not a fire hazard as you have been told, and you can use it if it is more economical at the time. Just make sure the insulation does not touch the underside of the roof decking. Leave at least a 2-inch gap for air flow. Insulating the walls with foam is ideal if you can afford it.
It not only insulates, it also creates an air barrier that really helps on HVAC bills, plus you may be eligible for tax savings, but you need to ask a local energy rater and your utility company.

(Dwight Barnett is a certified master inspector with the American Society of Home Inspectors. Write to him with home improvement questions at C. Dwight Barnett, Evansville Courier & Press, P.O. Box 286, Evansville, Ind. 47702 or e-mail him at d.Barnett(at)insightbb.com)

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